KANSAS CITY, MO.—With the uncertainty of the economy continuing into the foreseeable future, Big Bob’s Flooring Outlets of America’s has decided to put a conditional moratorium on selling new franchises.
The move, as described by Dave Elyachar, chairman and founder of the franchise, is being done because “we think it’s the wrong time for people to be borrowing money and start right out of the box. The economy is just too tough right now for someone to begin fresh.”
He added under normal conditions it takes from six to 12 months for a new franchisee to begin making a profit. But now, it could take from one to three years before being able to fully turn the corner. “We do not feel it is right to have someone put their life savings on the line.”
Scott Perron, president, added that Big Bob’s is contacting all its current prospects to inform them of the decision. However, this does not mean Big Bob’s is not concentrating on growing the franchise as well as making sure existing members become even more profitable.
“We will be much more selective on what type of dealer we will approve for new franchises as we are more interested in building successful businesses rather than just selling franchises,” Perron said.
When it comes to prospects, he added the only ones that will be approved at this time “will be successful mid- to high-end retailers looking for a line extension to their existing business. These owners may be entering the cash-and-carry marketplace in their respective areas ahead of local competition that may also be looking to expand. We will only entertain applicants who possess the internal financial resources to facilitate all startup costs.”
Elyachar noted the buying group’s current franchisees, who currently have 48 locations in 23 states, will also have the opportunity to add a store in their markets if they are so inclined to do so. “They already know the system and have established their name, so the initial start-up costs are not the same and there is no learning curve.”
As for lifting the moratorium, Perron said, “Our management team will re-evaluate our decision after the presidential election and prior to the year end.”
For more information on Big Bob’s, please call 913.789.7773.
